Summary of the report:
Event: the company released its semi-annual report that the annual operating income of the first half of 2016 was 88.8093 million yuan, down 56.81% from the same period last year, and the net profit was-28.8693 million yuan, down 198.93% from the same period last year. During the reporting period, the domestic and foreign economic environment was still complex and grim, and the pressure on the economic downturn was greater. Against this backdrop, the company reported lower revenue in the first half of 2016, a sharp decline from the same period a year earlier. At the same time, the fierce competition in the industry market led to the extension of the construction period of some projects and the decline of gross profit margin. During the reporting period, the company implemented restricted stock incentives and amortized share payment fees, which led to operating losses during the reporting period.
Intelligent warehousing revenue dropped slightly, and high-speed sorting machines were recognized by express e-commerce companies: in the first half of 2016, the company's intelligent logistics storage system achieved revenue of 34.8014 million yuan, accounting for 39.19% of the current business revenue, down 70.67% from the same period last year. Mainly due to the slowdown in the growth of the downstream automobile and construction machinery industry, the number of orders decreased. As the first domestic enterprise to produce high-speed cross-belt sorting machine, its product sorting efficiency is leading in the industry, but its price is only 2x3 of the same foreign products. It can be integrated into its intelligent storage system in the future and has a broad development prospect. At present, the company has completed orders such as Jiuxian and Vipshop Holdings Limited, signed 100 million new orders with Fenjiu, and reached a cooperation intention with Best Huitong, driving express e-commerce enterprises to the rapid development of intelligent sorting.
Three-dimensional garage can be expected in the future, to create a new performance highlight: in order to solve the parking problem, the state strongly supports the construction of urban parking facilities, and there is a large space for the development of three-dimensional garage in the future. At present, the company has set up three-dimensional garage operation branches in Tianjin, Taiyuan, Kunming and Guangzhou, combined with local partners to develop self-built intelligent three-dimensional parking business, the first project has been landed in Tianjin. In the first half of 2016, the company's intelligent three-dimensional parking system achieved revenue of 4.6318 million yuan, accounting for 5.22% of the current operating revenue, down 65.37% from the same period last year, mainly due to the lack of completion and acceptance of large-scale projects. Waiting for the order to gradually confirm the income, the three-dimensional garage can be expected in the future.
Investment advice and rating: the company's net profit from 2016 to 2018 is expected to be 58.73 million yuan, 91.14 million yuan and 117 million yuan, and EPS is 0.42,0.64 yuan and 0.83 yuan. Give a rating of "overweight".
Risk tips: intelligent logistics performance continues to decline; intelligent warehousing orders are lower than expected; three-dimensional garage business progress